Shares of Match Group (MTCH) are slipping after JPMorgan analyst Doug Anmuth downgraded the stock to Neutral as he believes Tinder's peak Gold surge is now behind, there are fewer product catalysts in the first half of 2018, and shares appear fairly valued.

MOVING TO THE SIDELINES: In a research note to investors this morning, JPMorgan's Anmuth downgraded Match Group to Neutral from Overweight, with a $42 price target, following an "impressive run" in the shares. The analyst acknowledged that he continues to believe Match Group is well positioned longer-term as the global leader in online dating. However, Anmuth argued that Tinder net additions are likely to trend down and return to more normalized levels in the first half of the year, with the peak Gold surge behind and fewer product catalysts expected ahead of its next monetization push in the second half of the year. While the non-Tinder brands are more stable, the upside is likely limited to low-single-digit subscription growth, he contended, adding that shares are fairly valued at current levels. Anmuth also told investors that he is shifting his preference to own IAC (IAC) shares over Match Group as he believes the former currently represents a more compelling value.

WHAT'S NOTABLE: Earlier this month, Oppenheimer analyst Jason Helfstein raised his price target for IAC to $175 from $161, citing the appreciation of Match Group shares, a slight bump up in his Angi Homeservices (ANGI) price target to $15 from $14, and the company's "strong" fiscal 2018 guidance on Publishing. The analyst reiterated an Outperform rating on IAC stock.

PRICE ACTION: In morning trading, shares of Match Group are fractionally down to $42.03.